FTSE 100 preview: Footsie to open lower amid European growth concerns

iNVEZZ.com, Friday, September 12: The FTSE 100 is expected to edge lower at the opening today, after global leaders warned on Europe’s economic growth.

On Friday, the UK benchmark index ended the session higher following the Scottish referendum result. Some 55.3 percent of Scots voted ‘no’ to independence from the UK while 44.7 percent voted ‘yes’, erasing concerns about a break-up which has weighed heavily on market sentiment in recent weeks.
After a sharp rise at the opening bell and fairly steady trading throughout the day, the Footsie ultimately closed 0.27 percent, or 18.63 points, up at 6,837.92.

According to trading platform IG, the gauge will open today 26 points down at 6,810, with no scheduled corporate and economic releases from listed companies to provide direction.
Investors are set to digest a dim outlook for Europe’s economic growth. Over the weekend, finance ministers and central bank chiefs from the Group of 20 (G-20) leading nations met in Cairns, Australia and delivered their outlook on the global economy. They said they were close to adding an extra $2 trillion to the global economy and creating millions of new jobs, but also warned that Europe’s extended slowdown remains a major stumbling block.

**Asian stocks slip**
In Asia, markets started the week on the back foot, with investors awaiting data this week that could provide more evidence of a slowdown in China.
The country’s flash manufacturing PMI reading tomorrow could come in below the 50 level, indicating that manufacturing activity is contracting.
“The psychological effect of a below-50 reading will be significant and consistent with the slew of softer Chinese data over recent weeks.” Mitul Kotecha, head of FX strategy Asia-Pacific for Barclays in Singapore, said in a note to clients.

On Friday, Japan’s Nikkei 225 marked its highest closing level since 2007 and gained 2.3 percent for the week. As of 08:47 BST today, Tokyo’s benchmark index had declined 143.89 points to be 0.88 percent lower at 16,176.52. At that time also, MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.91 percent, just 5.37 points, down at 582.06.

**Dow Jones ends at record**
US stocks mostly rose on Friday, with the Dow Jones Industrial Average index finishing at a record high, as investors welcomed Alibaba’s (NYSE:BABA) market debut and Scotland’s vote to remain in the UK.
Scaling back from an 84-point gain that had it setting another intraday record, the Dow Jones Industrial Average ended up 0.1 percent, or 13.75 points, up at 17,279.74, leaving it 1.7 percent higher for the week, with Microsoft (NASDAQ:MSFT) pacing blue-chip gains that extended to 18 of 30 components.
After setting an all-time high during the session, the S&P 500 lost nearly a point to 2,010.40, with technology and financial stocks falling the most and utilities and telecommunications leading gains among the index’s 10 major sectors.
After rising to its highest since March 2000, the Nasdaq shed 13.64 points, or 0.3 percent, to 4,579.79.